Tax-Exempt Organizations' Lobbying and Political Activities Accountability Act of 1987

Tax-Exempt Organizations' Lobbying and Political Activities Accountability Act of 1987 - Title I: Disclosure Requirements - Amends the Internal Revenue Code (IRC) to require tax-exempt organizations not eligible to receive tax-deductible charitable contributions to include in every written, broadcast, or telephone fundraising solicitation an express and conspicuous statement that gifts or contributions to the organization are not deductible as charitable contributions for Federal income tax purposes. Exempts from this requirement: (1) organizations having gross receipts of $100,000 or less; and (2) coordinated fundraising campaigns that solicit fewer than ten persons in a year. Fixes penalties for failure to comply with this disclosure requirement.

Provides for public inspection, at organization offices, of both the annual returns and the application for recognition of exemption filed by tax-exempt organizations. Protects from disclosure the names and addresses of contributors.

Requires that tax-exempt charitable entities (501(c)(3) organizations) provide annual information with respect to transfers and other transactions involving certain other tax-exempt organizations as the Secretary of the Treasury might require to prevent misallocation of revenues or expenses or any diversion of funds from the organization's exempt purpose.

Amends IRC penalty provisions relating to required filing by tax-exempt organizations and certain trusts to: (1) revise the maximum penalty applicable in certain cases; (2) fix a penalty for failure to include required and accurate information on a return; (3) fix a penalty for failure to comply with public inspection requirements; and (4) treat the penalties as tax for administrative purposes.

Assesses penalties against tax-exempt organizations that willfully fail to comply with public inspection requirements.

Title II: Political Activities - Extends the prohibition against certain political activities by tax-exempt organizations to include activities in opposition to any candidate (current law includes only those activities on behalf of a candidate).

Provides that any 501(c)(3) organization whose status is terminated by reason of intervening in any political campaign either for or against a candidate for public office shall never be treated as a tax-exempt not-for-profit civic league or organization.

Imposes on a tax-exempt 501(c)(3) organization: (1) a ten percent excise tax on its political expenditures; and (2) a 100 percent tax on any such expenditure that has been subject to the ten percent penalty tax and has not been corrected within the taxable period.

Imposes on the manager of a 501(c)(3) organization: (1) a two and one-half percent tax, to a maximum amount of $5,000, if such manager knowingly agrees to a political expenditure by the organization; and (2) a 50 percent tax, to a maximum of $10,000, if the manager refuses to agree to part or all of a correction of the prohibited expenditure.

Identifies the types of expenditures considered to be political.

Authorizes a civil action in U.S. district court in the name of the United States to enjoin a 501(c)(3) organization from making additional political expenditures and for other relief appropriate to ensure that the organization's assets are preserved for charitable purposes. Permits such an action only if: (1) the Internal Revenue Service has notified the organization of its intent to seek the injunction and (2) the Commissioner of Revenue has personally determined that the organization has flagrantly participated in prohibited campaign activity, and that injunctive relief is appropriate to prevent future political expenditures.

Directs the Secretary of the Treasury, upon the finding that a 501(c)(3) organization has made political contributions in flagrant violation of the prohibition against such expenditures, to make an immediate termination assessment of any income tax payable by such organization, as well as any penalty taxes due with respect to political expenditures. Sets forth guidelines to govern such termination assessments.

Imposes: (1) a five percent excise tax, to be paid by the organization, on the lobbying expenses of any organization whose 501(c)(3) status has been lost because of such expenditures; and (2) a corresponding penalty tax to be paid by the organization manager who agreed to such expenditures, knowing that they could result in the organization's loss of tax-exempt status.